OEMs critical as Digital Transformation disrupts across verticals

Dell EMC and IT market research and advisory firm IDC's spotlight on digital transformation for VSPs predicts that enterprises who are quick to embrace digital transformation trends will outgrow their competition, with those too slow to react will struggle to survive.

The report finds that many digital transformation-related technologies are still in their nascent stages but will have a profound impact across the following verticals in the next three years, and OEMs will be critical in helping VSPs take advantage of these advancements in line with the below findings:

Healthcare

The coming years in healthcare will focus on the adoption of disruptive technologies, with IDC predicting that:

Payers will have saved $1 billion globally through implementation of robotic process automation (RPA) tools, skill sets and process reengineering by the end of 2018

There will be a 50% increase in the use of robots in medications, supplies, and food delivery in hospitals by 2019

Manufacturing

Digital transformation technologies are already present in the manufacturing sector and benchmarks of the future will quickly shift from pure productivity to innovation. IDC predicts that:

75% of large manufacturers will update their operations with IoT and analytics-based situational awareness by 2019

60% of plant workers at G2000 manufactures will work alongside robots, 3D printing, AI and AR/VR by 2020

50% of manufacturing supply chains will have an in-house or outsourced capability for direct-to-consumption shipments and home delivery by 2020

Telecommunications

The future of telecommunications will be based around virtualised and software-defined networking (SDN) with a huge impact across verticals, leading IDC to predict that:

90% of enterprises will leverage communications service provider 'cloud connect' services to access multiple public cloud capabilities by 2018

More than 65% of enterprise UC&C implementations will be cloud-based UC as a Service by 2018

Software-defined wide area networks will be adopted by 60% of enterprises by 2018

To stay competitive, VSPs should focus on constantly innovating around their key differentiators and shed as much of other aspects of their business as possible, such as manufacturing, shipping, and support. OEMs often offer customisation of their building blocks to fit VSPs' needs and in some instances, OEMs not only supply solution components, but also manufacture, package, and ship the solution itself. As a result, IDC advises businesses to partner with a strong OEM with a digital transformation-ready portfolio in order to emerge as a market leader.

Dermot O'Connell, vice president, Dell EMC OEM and IOT Solutions, said: "Digital transformation is quickly becoming the banner term for organisations' innovation strategy. But so many are still in the early stages of implementing the changes needed to bring their companies to the next level. This IDC research demonstrates how key it is that organisations understand that they are not alone in tackling this challenge – OEMs can be the answer to meeting the future head on."

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